WASFAA 2011

Awarding and

PackagingPresented by: Kathleen Clark,

Chapman University School of Law and Wendy Olson,

Whitworth University2011 WASFAA Annual Conference

Agenda:Budget

Awarding Components

Awarding GoalsCommunicating

Award Information2011 WASFAA

Annual Conference

Agenda:What would you like to discuss

today?

2011 WASFAA Annual Conference

Building The Budget

2011 WASFAA Annual Conference

Cost of Attendance/Student Expense

Budget

2011 WASFAA Annual Conference

“The cost of attendance is the cornerstone of establishing a student’s financial need, as it sets a limit on the total aid that a student may receive.”

FSA Handbook, 2010

2011 WASFAA Annual Conference

Allowable CostsDetermined by school, taking into account:

➔ Tuition and fees ➔ Books, supplies, transportation,

personal, misc. ➔ Room and board ➔ Loan Fees ➔ ➔ Dependent care ➔ ➔ Study abroad expenses ➔ ➔ Disability expenses ➔ ➔ Employment expenses for co-op

study

2011 WASFAA Annual Conference

Determining Budget Amounts

•Survey Students•Survey Landlords in Surrounding Area•Update Previous Year’s with Consumer Price Index (CPI)•Use Information from Statewide Survey•Other Ideas?

2011 WASFAA Annual Conference

Determining

Federal Need $37,8

23Budg

etEFC

- $7,82

3Need

$30,000

This clip art was actually titled “Calculating Need.”

2011 WASFAA Annual Conference

Award ComponentsFederal/StatePell GrantFSEOGStafford LoanPerkins LoanFederal Work StudyPLUS LoanState GrantOther Items?

InstitutionalAcademic/Merit

TalentSports

Need-Based Gift AidEndowed & Restricted

Institutional LoanInstitutional Work

2011 WASFAA Annual Conference

Components’ RulesFederal/StatePell GrantFSEOGStafford LoanPerkins LoanFederal Work StudyPLUS LoanState GrantOther Items?

Institutional(% or flat rate)

Academic/MeritTalentSports

Need-Based Gift AidEndowed & Restricted

2011 WASFAA Annual Conference

Awarding Goals•Increase Enrollment Overall•Increase Enrollment for Certain Populations

•Disadvantaged Students•Athletes•Specific Majors•Specific Talents•Other?

•Increase Net Tuition Revenue•Increase statistics-SAT/GPA•Other Goals?

2011 WASFAA Annual Conference

Financial Aid vs. Business Affairs

Discount Rate – The revenue the school is willing to lose in order to sculpt their student enrollment. The basic equation is: gift assistance/tuition.

Gift Aid

$14,000/Tuitio

n$21,1

80Discount

66%

What should gift aid include/exclude?

2011 WASFAA Annual Conference

Conflicting Needs

•Low Discount Rate•High Quality Students•Number of Students Desired

2011 WASFAA Annual Conference

Plans to Meet Goals

• % of Need Met with Gift Aid•% of Tuition Met with Gift Aid•Flat Dollar Maximum in Gift Aid•% of Need Beyond Federal/State Met with Intuitional Gift Aid•Needy Students Only•Scholarship Awards Only•Other?

2011 WASFAA Annual Conference

4.0+ – 3.50

3.49 – 3.00

2.99 – 2.50

2.49 – 2.00

0 – $2000

45% 40% 20% 15%

$2001 - $4000

30% 35% 15% 10%

$4001 - $6000

30% 30% 15% 10%

$6001 - $8000

30% 25% 10% 5%

$8001 – $10,000

25% 25% 10% 0%Leveraging Model Example – Includes factors that go into awarding gift assistance in order to optimize revenue and enrollment.

2011 WASFAA Annual Conference

Packaging Plans- Federal Need vs. Direct

CostsFederal NeedTotal

$30,000

Bill-Tuition, Fees, Room

& Board$21,182

Merit$14,0

00Stafford

$3500

FWS$250

0Perkins

$2500

Total$22,5

00Unsub $2000PLUS $4000Total

$28,500

Merit$14,0

00Stafford

$3500

FWS$250

0Perkins

$1180

Total$21,1

80Unsub $2000PLUS $4000Total

$27,180

2011 WASFAA Annual Conference

Communicating the Award

Electronic vs. Paper

Advantages

Disadvantages

2011 WASFAA Annual Conference

Communicating the Award

What Must Be Included:Cost of Attendance?Expected Family Contribution?Types of Aid and AmountsRequirements to Continue to Receive Aid?Consumer Information?Active vs. Passive Acceptance.Other?

2011 WASFAA Annual Conference

Listing the Cost of

Attendance &EFC

on the Award Letter

• Shows the family what was used when determining the financial aid package.• Gives them an idea of what it will cost to go to that college – outside of the bill.• Lets them know how much they can borrow in additional PLUS.

• Gives the false impression that this is the true “out of pocket” expenses.• With the inclusion of the EFC there can come confusion thinking this is what is directly owed.

2011 WASFAA Annual Conference

Timing

The Award Letter as a

Recruitment Tool

Loans vs. Gift Aid

Comparison Tool

Enhance Other Recruiting Activities

2011 WASFAA Annual Conference

Discussion and

Questions

2011 WASFAA Annual Conference

More Information:NASFAA

FSA Handbook

Other?

Kathleen Clarkkatclark@chapman.eduWendy Olsonwolson@whitworth.edu